Ford's F-150 Lightning Production Cut: Munster Says It 'Makes Sense' On Demand Slowdown, While Cramer Spots Hybrid Opportunity

Ford Motor Co. F is reportedly cutting production of its F-150 Lightning electric pickup truck by about half, starting next year, citing a change in market demand. Two analysts had contrasting takes on the rumored development.

Demand Problem, Says Munster:

Deepwater Asset Management’s Gene Munster sees this as a function of slowing demand. “More pulling back on the EV accelerator from traditional car makers,” he said on X. He noted that Ford is cutting production goals for 2024 from about 170,000 units to around 85,000 units.

“Sounds like the reason is demand will be below 100k, so it makes sense they cut production,” Munster said.

The tech venture capitalist said the slowdown in EV demand is primarily due to higher interest rates, as these vehicles are priced 15-20% higher than typical gas vehicles.

Also, traditional car companies’ EV offerings are “underwhelming” with respect to price/range, he said. “$TSLA offers the best EV for the money, and since traditional auto is slowing their investments in EVs, Tesla's price-to-performance lead should remain intact for the foreseeable future,” he added.

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Cramer Defends His Favorite Automaker:

CNBC host Jim Cramer has a different take on the rumored production cut by Ford. “Ford’s move to cut production of the F-150 Lightning is a recognition that the company can’t just decide to lose money on a truck when they can make a great deal of money on hybrids,” he said.

“If there is no appetite for a car or truck of any kind should production remain in full strength?” he added.

The CNBC host has made no bones about his preference for Ford over Tesla in the past. He has also disparaged Tesla’s Cybertruck, the rival offering to the F-150 Lightning, as a “toy for Musk’s fanboys” and the “ugliest truck” he has ever seen.

Tesla launched its Cybertruck on Nov. 30 to mixed reviews, with analysts diverging in their opinion about its contribution to growth in the near-to-mid-term.

In premarket trading on Tuesday, Ford shares rose 0.27% to $11.10, according to Benzinga Pro data.

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

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